03/24/2017 03:15 PM House LABOR & COMMERCE

        HB 86-STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL                                                                     
                                                                                                                                
3:39:09 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the next order  of business  would be                                                               
HOUSE  BILL   NO.  86,   "An  Act   relating  to   nonrenewal  of                                                               
occupational licenses for default on a student loan."                                                                           
                                                                                                                                
3:39:43 PM                                                                                                                    
                                                                                                                                
OWEN PHILLIPS,  Staff, Representative  Matt Claman,  Alaska State                                                               
Legislature,  advised   that  HB  86  repeals   current  statutes                                                               
allowing the Alaska Commission  on Postsecondary Education (ACPE)                                                               
to threaten non-renewal of  occupational licenses for individuals                                                               
who have  defaulted on student  loans.  Repealing  this authority                                                               
will allow licensed  individuals to continue their  work in order                                                               
to  earn an  income and  pay back  their defaulted  loans without                                                               
fear of losing their license.                                                                                                   
                                                                                                                                
3:40:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP   noted  that   the  bill  read   that  the                                                               
commission  must notify  the Division  of Corporations,  Business                                                               
and Professional  Licensing that  a loan was  in default  and, AS                                                               
14.43.148 actually denies renewal and  does not revoke a license.                                                               
He noted  this provision  had not been  utilized in  eight years,                                                               
and asked  whether the  commission had  notified the  Division of                                                               
Corporations, Business,  and Professional Licensing at  any point                                                               
in the last eight years as  to the amount of default, and whether                                                               
it was an issue.                                                                                                                
                                                                                                                                
3:41:42 PM                                                                                                                    
                                                                                                                                
JANEY   HOVENDEN,    Director,   Corporations,    Business,   and                                                               
Professional  Licensing,  Department  of  Commerce,  Community  &                                                               
Economic  Development  (DCCED),  responded that  she  could  only                                                               
speak   to  how   the  legislation   impacts   the  Division   of                                                               
Professional Licensing under Title 08.   The Alaska Commission on                                                               
Postsecondary  Education  (ACPE)  had  not provided  a  list  [of                                                               
default]  since  2002,  and  there  had been  no  impact  on  the                                                               
division from this law.                                                                                                         
                                                                                                                                
REPRESENTATIVE KNOPP  asked Mr. Phillips whether  the list exists                                                               
and ACPE had not notified the  division, or whether the list does                                                               
not exist.                                                                                                                      
                                                                                                                                
MR. PHILLIPS  commented that as  Ms. Hovenden had not  received a                                                               
list,  he offered  his understanding  that there  was not  a list                                                               
because current statute  read that if the  commission reaches out                                                               
with  a list,  then  the  license must  be  revoked through  this                                                               
department.                                                                                                                     
                                                                                                                                
3:43:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BIRCH  advised  that  it appears  the  state  has                                                               
approximately  $240  million  in  outstanding  debt,  and  17,000                                                               
borrowers at  approximately $14,000 a  piece, out of  that number                                                               
there are only 46 individuals  with an occupational license hold,                                                               
and  commented   that  it  sounded   like  an   incredibly  small                                                               
percentage of the  17,000 borrowers.  He asked  whether the State                                                               
of Alaska can recover student  debt owed by an individual out-of-                                                               
state.                                                                                                                          
                                                                                                                                
MR. PHILLIPS advised  that Ms. Butler was not  available for this                                                               
hearing, and he did not know the answer to that question.                                                                       
                                                                                                                                
REPRESENTATIVE BIRCH said  he was curious as to how  much of that                                                               
$240 [million] in liability is  recoverable if someone lives out-                                                               
of-state.                                                                                                                       
                                                                                                                                
CHAIR KITO responded that that debt  is still owed, and this is a                                                               
matter of  whether the state has  the tools to collect,  which is                                                               
definitely a question for the  Alaska Commission on Postsecondary                                                               
Education (ACPE).                                                                                                               
                                                                                                                                
CHAIR KITO, after  ascertaining no one wished  to testify, closed                                                               
public testimony on HB 86.                                                                                                      
                                                                                                                                
3:45:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  moved to report HB  86, Version 30-LS0382\A,                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying  fiscal  notes. There  being  no  objections, HB  86                                                               
moved from the House Labor and Commerce Standing Committee.